S. 5: Scope of total income – liaison office of the non-resident – A liaison office which is only carrying on such activity of a “preparatory or auxiliary” character is not a Permanent Establishment in terms of Article 5 of the Double taxation Avoidance Agreement – The deeming provisions in Sections 5 and 9 of the 1961 Act can have no bearing whatsoever- DTAA-India-UAE [S. 2(24) , 4 , 9(1)(i) ,90 , Art , 5 , 7 ]

S. 5: Scope of total Income – Accrual of income of discretionary trust – Income retained by the trustee cannot be brought tax in the assessment of beneficiary. [Wealth-tax Act, 1957, section 3]

Interpretation of taxing statutes – Binding precedent – Two conflicting decision of different High Court – Transfer of case – Jurisdictional High Court decision will be binding on the Assessing Officer .

Interpretation of taxing statutes – Binding precedent – Two conflicting decision of different High Court – Transfer of case – Jurisdictional High Court decision will be binding on the Assessing Officer .

S. 271(1)(c) : Penalty – Concealment – Disallowance of service tax -Nether debited to profit and loss account nor claimed as expenditure – levy of penalty is held to be not justified [ S.43B ]

S. 271E : Penalty – Repayment of loan or deposit – Reasonable cause – Levy of penalty is not valid [ S. 269T, 273B ]

S. 254(2): Appellate Tribunal-Rectification of mistake apparent from the record –Non -consideration of jurisdictional High Court , though not cited before the Tribunal at the time of hearing of appeal , constitute a mistake apparent on record – Gain derived form foreign currency bonds – Order recalled [ S. 4 , 28(i) ]

S. 254(1) : Appellate Tribunal – Legal opinion – Delay of 458 in filing an appeal against an order under section 263 of the Act was condoned on payment of cost of Rs 25000 to the Maharashtra State legal Services . [ S. 253, 263 , 260A ]

S. 153C : Assessment – Income of any other person – Search – Assessment initiated without issue of notice is held to be bad in law [ S.132 ]

S. 153C : Assessment – Income of any other person – Search – Additional ground – The date of receiving the books of account by the Assessing Officer having jurisdiction over such other person, from the Assessing officer of the searched person- Satisfaction by the A.O in the file of the assessee i.e the person other than the searched person, shall be taken as the relevant date for reckoning the period of six assessment years for which assessments could have been framed u/s 153C. [ S.132 ]